By John Galt
August 7, 2011
Odds are fairly good that the three major Bubblevision networks will open tonight’s Asian markets with live coverage involving their major personalities and discussions as naseum about the evil of Standard and Poor’s and how the economy will be impacted by a political downgrade. There will also be the usual suspects uttering their stock predictions and prognostications advising the viewers to “stick to the buy and hold strategy over the long haul because stocks go up and stocks go down” so the average viewer who does not actually do their own research will get the pleasure of being raped further by their mutual fund manager or stock broker.
IF you were one of those unfortunate souls who listened to these idiots, you are still in the hole if you purchased stocks going into or near either of the double tops over the last fourteen years and in fact adjusted for the massive inflation since 1997, you have been and shall continue to lose many listening to them:
The reality of what is about to happen could not be even further from the truth we will get to witness tonight. The stock honks, predictors, banksters and others who will pontificate and pray you follow their advice so they will make outlandish statements in a feeble attempt to calm the individual investors and prevent the few souls still invested from calling their fund managers and going 100% into cash or treasuries. The facts demonstrate that the massive Federal Reserve stock rally since March 2009 is about to run out of steam, it failed at a major historic resistance point by not topping the 1999 levels above 1400, and should now face a retest of either the 1,000 level on the S&P or more logically the March 2009 lows.
Either event will be deemed unacceptable by the political and financial powers that be.
Thus the predictions you hear tonight, the “oh my God we’re all going to die” or “buy the dips” nonsense that is uttered over and over again are a total waste. The world’s central banksters are meeting all weekend and deciding the path of the economies to bail out the West and preserve the peace with our Middle Eastern and Asian support. The true test will be to watch the bond markets and currencies where the smart money and world governments intervene on a regular basis.
Anyone who tells you that the know what tomorrow’s equity markets will do is selling something and a complete, total, liar.